Grams v. Milk Products, Inc.
Supreme Court of Wisconsin
699 N.W.2d 167 (2005)
The Grams (plaintiffs), calf-raising specialists, suffered sick and dead calves after using a milk replacer made by Milk Products (defendant) and sold by Cargill (defendant); they sued in both tort and contract, but the circuit court granted summary judgment against the tort claims under the economic-loss rule and against the contract claim against Milk Products for lack of privity, leaving only the contract claim against Cargill. The Grams argued the economic-loss rule shouldn't bar recovery for damage to the calves, since the calves were separate property from the milk replacer product itself.
Whether the economic-loss rule bars tort claims for damages resulting from disappointed expectations about a bargained-for product's performance, even where those disappointed expectations manifest as damage to other property.